ch 22 contract documents Flashcards
(92 cards)
1
Q
What do contract documents consist of?
A
Owner-Contractor (or Vendor) Agreement; the General Conditions of the Contract; the Supplementary Conditions of the Contract (if any); the drawings, specifications, and addenda issued before execution of the contract; any other documents specifically listed in the agreement; and modifications issued after execution of the contract.
2
Q
Modification
A
A change order, a written amendment to the contract signed by both parties, a written interpretation issued by the interior designer, or a written order for a minor change in the work.
3
Q
The contract documents are complementary in that . . .
A
what is required by one is as binding as if required by all of them.
4
Q
Bidding documents ARE NOT part of .the _______, although they are often bound into the project manual.
A
Contract
5
Q
What are the 5 sets of AIA documents that relate to interior design work?
A
A175 ID, A275 ID, A775 ID, B171 ID, & B175ID (In addition, AIA form A201 can be used for interior construction projects).
6
Q
A175 ID
A
Standard Form of Agreement Between Owner and Vendor for FF&E when the basis of payment is a STIPULATED SUM.
7
Q
A275 ID
A
General Conditions of the Contract for FF&E
8
Q
A775 ID
A
Invitation and Instructions for Quotation for FF&E
9
Q
B171 ID
A
Standard Form of Agreement Between Owner and Architect for Architectural Interior Design Services
10
Q
B175 ID
A
Standard Form of Agreement Between Owner and Architect for FF&E Design Services.
11
Q
A201
A
General Conditions of the Contract for Construction
12
Q
Whether the interior designer is working alone or with an architect, interior design projects that involve both construction and furnishings are typically completed under . . .
A
2 contracts - 1 for construction and 1 for FF&E
13
Q
What contracts can be written by the interior designer’s attorney or provided by the owner?
A
Owner-Vendor Agreement & Owner-Contractor Agreement
14
Q
If there are two contracts for the job (FF&E & Construction), there are two . . . .
A
Contractors
15
Q
Why are there two contracts (1 for construction and 1 for FF&E)?
A
Because construction contracts are governed by common law that regulates services, and FF&E contracts are governed by statutory law that regulates the sale of goods.
16
Q
What do FF&E contracts typically cover?
A
Moveable items such as furniture, appliances, rugs, lamps and accessories.
17
Q
How are any exclusions described for the Owner-Vendor Agreement?
A
They can be described in the Owner-Vendor Agreement as well as in the other contract documents when the are identified as being the responsibility of other parties.
18
Q
Why is the date of commencement important?
A
Because it is from this date that construction complete time is measured.
19
Q
What can be used as the date of commencement?
A
The date can be the date of the agreement, a specific calendar date specified in the agreement, or the date when the contractor is given a notice-to-proceed letter by the owner.
20
Q
Date of Completion
A
In the same article as the date of commencement and is expressed with a specific calendar date.
21
Q
Contract Sum
A
The contract sum states the compensation the vendor or contractor will receive for doing the work.
22
Q
What define how the owner makes periodic payments to the contractor?
A
The Owner-Contractor Agreement defines how these payments are to be made. These payments are usually monthly.
23
Q
In standard AIA forms, what is the amount due in any period based on?
A
The percentage of completed work and any materials purchased and stored by not incorporated into the work, less any moneys already paid.
24
Q
Retainage (Holdback in Canada)
A
A certain percentage (usually 10%) of each payment from the owner to the contractor that is withheld until final completion of the work.
25
How does a ventor receive payment?
The vendor must submit an application for payment to the interior designer listing the completed work and stored materials. The designer then reviews the application, verifies that it is correct, and recommends payment to the owner, when then makes payment. If there is work in dispute, the designer may choose not to certify payment of all or a portion of the amount until the problem is resolved.
26
Stipend
A periodic payment.
27
Substantial Completion
The stage in the progress of the work when the work or a designated portion thereof is sufficiently complete according to the contract documents so the owner can occupy or utilize the site, though a few minor items may remain to be completed or corrected.
28
When is completion time extended?
Completion time may be extended as provided for in the General Conditions when circumstances are beyond the control of the contractor.
29
Liquidated Damages
Moneys paid by the contractor to the owner for every day the project is late. They represent actual anticipated losses the owner will incur if the project is not completed on time. A liquidated damage provision is accompanied by a bonus provision.
30
Bonus Provision
Provision so that the contractor receives a payment for early completion. It is usually based on a realistic cost saving the owner will realize for early completion. This provision is usually included with one for liquidated damages.
31
If a penalty clause is included, an equal _____ provision must also be included.
Bonus
32
Bonus/Penalty Clause
An incentive to complete the project on time. This clause may have no relationship to actual monetary losses the owner may incur if the project is not completed on time.
33
A penalty clause is NOT the same as . . . .
Liquidated Damages
34
What document is one of the most important parts in the entire set of contract documents for FF&E?
The General Conditions of the Contract for FF&E (AIA Form A275 ID).
35
The General Conditions of the Contract for FF&E (AIA Form A275 ID) is incorporated by specific reference into which two forms?
Owner-Designer Agreement (B171 ID) as well as the Owner-Vendor Agreement (A175 ID).
36
If AIA forms are used the word _________ must be replaced with _______ _________.
Architect with Interior Designer
37
Definitions and execution of the contract, related activities by the owner or separate vendors, protection of persons and property, insurance, and miscellaneous provisions are some topics included in the __________ _____________
General Conditions
38
The General Conditions of the Contract for FF&E (AIA Form A275 ID) is coordinated with the ___.
UCC (Uniform Commercial Code) - Specifically Article 2, which governs the sale of good. This is especially important for the interiors designer selling furniture and accessories to clients rather than just specifying them.
39
The UCC is applicable in all states except ___________.
Louisianna, which has only adopted certain sections of the code.
40
AIA Form _______ recognizes the commercial standards set forth in the UCC and uses certain standard UCC terminology.
A275 ID
41
What does the UCC regulate?
The buying and selling, along with other types of transactions, of goods that are defined as tangible and movable items.
42
What does the UCC cover?
Things such as sales contracts, product liability, warranties, ownership (title), and risk.
43
In some cases, the ____ may take precedence over the contract. In other cases, state laws may overide some provisions of the _____.
UCC
44
A designer must know the provisions of the UCC and the state's laws if . . .
the designer is reselling furniture and furnishings.
45
What regulates the DELIVERY of goods?
UCC and ICC
46
ICC
Interstate Commerce Commission
47
Contract Carriers
Provide delivery service only to certain companies they choose to do business with. The responsibility for the goods depends on WHO OWNS THE GOODS. Whoever has title to the furniture bears the responsibility of damage or loss.
48
Private Carriers
Companies who own and operate their own trucks to move their own merchandise.
49
Risk to either the seller or buyer during shipment is assigned by the _____.
UCC
50
FOB
Free On Board - The MANUFACTURER pays for loading the goods onto a truck or train and is followed by the word factory or destination.
51
FOB Factory
Title is transferred AT THE FACTORY. The BUYER pays the transportation costs, and the manufacturer is NOT responsible for loss or damage during shipment. This is often referred to as a SHIPMENT CONTRACT.
52
FOB Destination
Means the SELLER is responsible for shipping and recovering any damage or loss during shipment This is often referred to as a DESTINATION CONTRACT.
53
FOB Factory-Freight Prepaid
The FF&E vendor OWNS the furniture, but the SUPPLIER pays the shipping charges.
54
What must the owner provide (unless otherwise provided for in the contract)?
(1) Area on premises for vendor to use to do the work (2) Access to the premises at reasonable times (3) Space for the receipt, inspection, and staging of materials and furnishings (4) Temporary utilities, facilities, and vertical transportation necessary for the execution of the work (5) Normal security for the premises.
55
The FF&E General Conditions state that the owner is responsible for . . .
a preliminary inspection of the furniture and other goods at the job site. This DOES NOT CONSTITUTE ACCEPTANCE.
56
When is an acceptance inspection done?
When installation is complete, the owner must conduct an acceptance inspection, and if any problems are found, the OWNER MUST NOTIFY THE VENDOR IN WRITING.
57
Who in an FF&E agreement is responsible for ordering, delivering, and installing the goods in the contract?
Vendor
58
What is the vendor's PO based on?
Interior designer's specifications
59
Every manufacturer or supplier has a separate _______ ______.
Purchase Order
60
What is sent to the FF&E vendor, based on the PO, prior ro manufacture or order filling?
Acknowledgement
61
What is the vendor responsible for?
Supervising the work and paying for labor, materials, FF&E, and other facilities necessary for the completion of the work. The vendor must also prepare a work schedule for review by the owner and designer and provide for final cleanup of the work.
62
How does the vendor get paid?
The vendor sends payment requests to the owner for the moneys paid out by the vendor. There is a quotation schedule showing the values allocated to each quotation for portions of the work. When a payment is due, the vendor submits to the owner this quotation schedule with an itemized application for payment along with supporting data such as copies of bills of lading or requisitions from sub-vendors. The owner then pays the vendor.
63
Who takes on the risk of loss of the furniture and fixtures until the owner accepts it after the final inspection or upon payment in full to the vendor?
Vendor
64
When does the vendor have no obligation to insure fixtures and furniture?
When they do not conform to the contract documents or that have been rejected by the owner.
65
Who is responsible for delivery and installation?
Vendor
66
Installation includes . . .
testing as required by the contract documents.
67
Who must consult to identify a delivery route?
Owner and Vendor
68
Initial Inspection
Owner may conduct this inspection upon delivery to verify delivery and correct quantities. THIS DOES NOT CONSTITUTE ACCEPTANCE.
69
Acceptance Inspection
After the initial inspection, the owner, with the assistance of the interior designer, conducts an acceptance inspection. If any fixtures or furniture are found to be nonconforming, the OWNER must notify the vendor IN WRITING. The vendor has 30 days to provide evidence of arrangement to remedy the basis for rejection.
70
What is the interior designer responsible for?
The designer is the OWNER'S REPRESENTATIVE and is responsible for the administration of the contract as provided for in the Owner-Designer Agreement and other contract documents.
71
What happens if the owner fails to cooperate and coordinate his/her activities with data on the vendor's progress schedule?
The owner is then responsible for the costs the vendor incurs for warehousing, demurrage, storage, and delivery charges. The vendor is due an extension in completion time for negligence on the part of the owner, for changes in work, or because of labor disputes, fire, or other causes beyond the vendor's control.
72
Demurrage
The detention of a ship in port by the ship owner, or of the railroad car or truck by its owner, beyond the time normally allowed or agreed upon.
73
AIA Document A201
General Conditions of the Contract for Construction - Often used for interior construction, changing the words "interior designer' for the word "architect".
74
What does Article 4 of the General Conditions of the Contract for construction state?
States the interior designer's roles and responsibilities in contract administration. The designer acts as the owner's representative, advises and consults with the owner, and MAY ACT ON BEHALF OF THE OWNER to the extend provided in the contract documents. The designer assists the owner in coordinating schedules for delivery and installation but is not responsible for malfeasance or the contractor or any supplier in performing their duties. The designer keeps the owner unformed of the progress and work quality but is NOT required to make exhaustive or continuous inspections. THE INTERIOR DESIGNER DOES NOT HAVE CONTROL OVER THE MEANS, METHODS OR PROCEDURES OF CONSTRUCTION, PROCUREMENT, SHIPMENT, DELIVERY, OR INSTALLATION, NOR IS THE DESIGNER RESPONSIBLE FOR SAFETY PRECAUTIONS OR ACTS OF OMISSION OF THE CONTRACTOR, SUBCONTRACTORS , or SUPPLIERS.
75
What DOES the designer have the authority to do?
The designer CAN recommend that the owner reject work that does not conform to the contract documents. The designer also has authority to require special inspections or testing of the work.
76
What DOESN'T the designer have the authority to do?
Stop the work or terminate the contract on behalf of the owner.
77
The actions or authority of the interior designer DO NOT create duty or responsibility to . . .
The contractor, subcontractors or others.
78
What is the LIMITED PURPOSE of the designer reviewing shop drawings and other submittals?
Check for conformance with the design concept expressed in the contract documents.
79
How can the designer change the work?
The designer prepares change orders and may authorize minor changes in the work that do not involve adjusting either the CONTRACT SUM or CONTRACT TIME and that are not inconsistent with the intent of the contract documents.
80
Who interprets and decides on matters concerning the requirements of the contract documents and the performance of the work?
Interior Designer - If designer's interpretation is not acceptable, there are provisions in the General Conditions for arbitration. The designer's decision concerning matters related to aesthetic effect are final if consistent with the intent shown in the documents.
81
Who conducts a final inspection to determine the dates of substantial completion and final completion, and issues a final certificate for payment?
Interior Designer
82
What does Article 2 of the General Conditions of the Contract for construction state?
The duties, rights and responsibilities of the owner. Among these is the responsibility to furnish evidence, at the request of the contractor, that financial arrangements have been made to fulfill the owner's obligations under the contract. The owner must also, if necessary, provide surveys describing the physical characteristics and utility locations for the site and a legal description of the site. The owner must provide to the contractor the number of copies of the drawings and project manuals that are necessary for the execution of the work.
83
What happens if the contractor fails to correct work not in conformance with the contract documents?
The owner may order the contractor to stop work until the cause for the order is eliminated. The owner has the right to carry out the work if the contractor fails in his/her duties to correctly do so.
84
How long does the contractor have from receiving written notice from the owner to commence corrections? What happens if no action is taken by the contractor?
7 days; If no action is taken the owner must give a second notice, and if no corrective actions have been taken by the contractor after this time the owner may take other actions to complete the work, deducting the cost to do this from the contractor's agreement.
85
What is the contractor solely responsible for?
All fabrication, delivery, and installation means, methods, techniques, and procedures, and for coordinating all portions of the work. This includes visiting the site and taking any field measurements required to perform the work. The contractor must report any problems to the owner. The contractor is also responsible to the owner for the acts and omissions of all subcontractors and other people performing work under him/her.
86
What is NOT the contractor's responsibility?
To ascertain that the contract documents conform to building codes, ordinances, and other regulations.
87
What should the contractor do if he/she notices some variance in the contract documents concerning building codes and other regulations?
Contractor must notify interior designer in WRITING. If the contractor does NOT give this notice and proceeds to perform work knowingly in variance with some regulation, the CONTRACTOR ASSUMES FULL RESPONSIBILITY for such work and must bear all costs to correct the situation.
88
What is the contractor obligated to provide to the owner and designer?
The contractor must provide a current schedule. The contractor must conform to it and must cooperate with the owner and designer in coordinating the schedule with schedules of other contractor's doing work.
89
The General Conditions includes a section on _________.
Indemnification - This clause is intended to protect the owner and designer against situations where a person is injured due to the negligence of the contractor or the contractor's agents. It is also intended to protect the owner and architect against claims from property damage other than to the work itself.
90
Indemnify
The secure against loss or damage.
91
What is stated under the General Conditions' section on indemnification?
That, to the extend provided by law, the contractor shall indemnify and hold harmless the owner and interior designer, and their agents and employees, against claims, damages, and expenses arising out of performance of the work.
92
What does the indemnification clause of the General Conditions NOT relieve the interior design of?
His/her liabiilty for errors in the drawings, specifications, or administration of the contract.
